Why did MUU crash 26.65% in one day?

Because it is a 2x leveraged ETF, so when Micron (MU) fell 13%, the loss was amplified to roughly 26.65%.

What caused Micron's 13% drop?

Broadcom's disappointing quarterly results and a spike in interest rates, raising concerns about the semiconductor sector.

Will this affect other semiconductor ETFs?

Yes, other funds also declined but by smaller percentages, such as the SOX index which fell about 4%.

It is a 2x daily leveraged ETF on Micron stock, aiming to double the daily return of the underlying.

MUU 2x Micron ETF Crashes 26.65% After Broadcom Miss

The Direxion Daily MU Bull 2X Shares (MUU) lost 26.65% in a single session after Micron Technology (MU) dropped roughly 13% to $864 on June 5, 2026, triggered by Broadcom's earnings miss and rising interest rates.

The Direxion Daily MU Bull 2X Shares (MUU) suffered a 26.65% decline in one session on Friday, June 5, 2026, after the underlying stock Micron Technology (MU) experienced its worst single-day drop in years. The sharp selloff followed disappointing quarterly results from Broadcom (AVGO) and a sudden spike in interest rates.

Potential Causes

Broadcom's Earnings Miss

Broadcom reported quarterly results that fell short of analyst expectations, raising concerns about weak demand for semiconductors in key segments such as data centers and telecommunications. Since Micron operates in the same sector, its stock was negatively impacted.

Interest Rate Spike

The announcement coincided with a rise in U.S. bond yields, prompting investors to reduce positions in high-growth stocks like Micron.

Context

Micron's Performance

Micron closed at $864, down approximately 13% from the previous session. This is the largest single-day decline in years.

Leverage Effect

MUU is a 2x daily leveraged ETF, meaning it amplifies the daily return of the underlying stock by a factor of two. Therefore, when the stock falls 13%, the ETF falls roughly 26% (before fees).

Similar Moves in the Sector

Other semiconductor stocks also declined, though by smaller percentages. The Philadelphia Semiconductor Index (SOX) fell about 4% in the same session.